Learn Real Life Property Investing
Category: Real Estate Club Central Florida
The need for Rental Properties is on the rise in SW and Central Florida and many are jumping in with both feet. Problem? They are making Newbie mistakes. Mistakes that are easy to avoid with a bit of thought and lots of preparation.
Not Knowing the Local Laws:
There are very specific laws governing Landlord-Tenant relationships. These laws vary from state to state, county to county , even city to city. In many counties, there are Apartment Owner groups. If not, there is plenty of information online or at your library.
One example is the timeline a deposit is to be returned when a tenant vacates the property. Laws that dictate written communication between landlords and tenants concerning late notices. A few minutes researching these laws can save you lots of time and money when the tenant moves.
But it is my friend’s daughter renting the apartment –
Your prospective tenant can be your best friend, a friend of a friend or even a family member. Just because you are told they are a great renter does not make it true. A background check and a credit check should be done for all prospective tenants. I have known family members who do not have an inkling about their sibling’s poor payment record or even evictions.
There are several online credit report applications for landlords. Some even cost below 
$50 per applicant. By the way, ALL prospective tenants should have background checks.
What is a reserve and why do I need one?
Many Landlords do not estimate their expenses properly. The lawn, the pool company and even bug control are the norm. But many landlords forget regular maintenance and repair from wear-and-tear. There are replacement costs and always unexpected repairs.
A reserve or extra funds for emergencies should be set aside each month from the rent to cover these unexpected expenditures. A Landlord needs to estimate these expenses and put them aside from the collected rents. Also, only plan your expense reserve based on 10 or eleven months rent. There may be a month or two the property sits empty between tenants. Just because the income stops, does not mean the expenses stop.
Renters’ Insurance for everyone.
This should be a no-brainer but one part is overlooked many times. The apartment and tenants are always covered. What is forgotten most often – the tenant’s belongings. The landlord may be responsible if a leak, for instance, ruins the tenant’s furniture.
In some states, a landlord can demand the Tenant to carry Renters’ Insurance. Check your state and local laws. Always protect “your stuff” and “their stuff”.
If you are unsure of your local laws, check with the local Housing Authority, the Library or the Board of Realtors. Many times, books on Landlord-Tenant Laws are available.
Mike Cathell,
Broker/Owner, Investment Property Consultant
Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC
SOLD
12468 NW 19th Pl Coral Springs, FL 33071
Beautiful custom built Mediterranean style home in the Greens of Eagle Trace subdivision. Built in 1997, this home is located on a cul de sac and offers 6 bed, 5.5 baths with 4793 square feet of living space, and an attached 3 car garage. The curb appeal is breathtaking as you pull into the circle driveway with the palm trees and grand columns. Step into the foyer with tall ceilings and hardwood floors for a dramatic entrance. The rest of the home is a mix of ceramic tile and wood floors. There is a white stone floor to ceiling fireplace off the kitchen. The kitchen is huge, ample storage, prep space, and plenty of room for everyone to gather around the center island or at the breakfast bar. The home has lots of windows allowing for tons of natural light. Off the living room and some bedrooms is access to the screened in back patio. In the backyard, you will find an in-ground pool perfect for those Florida summers.
We obtain these properties through auction. Buyer needs to close within 15 days. Contact through email at InvestSWFL@gmail.com. Put property address in email subject line.
Following property fees apply:
We obtain these properties through auction. Buyer needs to close within 15 days. Contact through email at InvestSWFL@gmail.com. Put property address in email subject line.
Following property fees apply:
These properties do not last long, sometimes only hours. For more information, please email me at InvestSWFL@gmail and I will have Crystal Snyder contact you directly. In Subject, write “Auction Property 7-22”.
301 Lotus Path, Clearwater FL 33756
-5 bedroom
-6bathroom
-6791 sqft
-pool
This property sits across the street from the beach. It will need some updating and work. We just obtained the property from auction so I have not had a chance to get my contractor in there for n exact rehab estimate but we do estimate a $200,000 rehab based on updating and rehab that would be needed according to the comps.
The best comp that we have found is 327 Lotus Path. It’s just a few houses down the street from subject.
327 lotus path features
-4bedrooms
-5.5 bathrooms
-4370 sqft
This property sold for $920,000 on 5/4/2016 at $210sqft. This property was quite dated when sold.
As stated before, this property was obtained from an auction. It was listed on the MLS for $755,300. At auction, we were bid to $976,000 however I am able to pull this price down a little through my contacts at the bank. I am currently working on pulling it down and feel I can get it near $790,000-$800,000.
So, we feel the break down is this-
Purchase price-$800k
Rehab-$225k(cushion for the unseen)
Closing cost-$40k(both front end and back end closing cost)
Realtor fees-$78,000
Holding cost-50,000
Based on the neighbor we can sell the home at $210 x 6791sqft =$1,426,000. Of course, you want a quick sale so we suggest selling at $1,350,000.
With all the cost you are looking at spending a possible amount of $1,193,000. Selling at our suggested below market price of $1,350,000 should net you a profit of $157,000.
Terms-due diligence to be done upfront. Buyer pays closing and buyer agent fees (I included the front end closing cost in the above-mentioned calculation), cash closing in 2-3 weeks.
Crystal Snyder
2285 Chilcote Ter Port Charlotte FL 33981
Features:
– on the river
-3 bedroom
-2 bathroom
-1898sqft
-pool
Needs some rehab. Tax assessed at $327k.
Asking $350k
according to our comp at:
2440 quail ter which features
-2/2 on the river
-1318 sqft
-11 years older than subject
– sold at $350k in 3/2016
Using sqft comps from the comparable subject has a value of $510k. Taking into account that subject is newer our local agent placed retail value at $550K after rehab.
Terms of sale- buyers pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before being fully executed.
12468 Nw 19th Pl, Coral Springs, FL 33071
6 Beds
1 Half Bath
5 Full Baths
Size: 5,087 Sq. Ft.
Built in 1996
Deck/Patio, Backyard, Garage, Swimming Pool, Air Conditioning and Heating
Custom built Mediterranean style home in the Greens of Eagle Trace subdivision. Built in 1997, this home is located on a cul de sac and offers 6 bed, 5.5 baths with 4793 square feet of living space, and an attached 3 car garage. The curb appeal consists of palm trees and grand columns as you pull into the circle driveway. Walk into the foyer with tall ceilings and hardwood floors for a beautiful entrance. New flooring would be a nice upgrade to this property. There is a white stone floor to ceiling fireplace off the kitchen. The kitchen is huge, ample storage, prep space, center island and breakfast bar. Off the living room and some bedrooms is access to the screened in back patio. In the backyard, you will find an in-ground pool. Needs some updating through out. This property is pending through the auction and was bid to $711k. Tax assessed value is $874k. With my expertise on auctions and connections as well, I can bring this property back down and let it go for $680k OBO.
Terms of sale- buyer pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.
16647 112th Trail N, Jupiter FL 33478
Features:
-2.5 acres
-pool
-3 bedroom
-2bathroom
-4730 sqft
-2 kitchens
In need of an estimated 55k in rehab. Most recent company we could find is at
16840 113th Trail N and is only $365 sqft smaller and sold for $650k on 10/1/2015. This property would make a great investment opportunity.
Price-$275,000
Terms of sale- buyers pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.
9641 NW 28th st in Hollywood,FL 33024
-4bed
-4bath
-3846 sqft.
Will need rehab. Property sits on the water in Lake Maranatha Estates. The neighbor to this house is currently for sale at 2.2mm and another neighbor just sold for $625,000 and was 1500sqft smaller than subject. According to the comps this home is worth $914,000 and we r asking $575,000.
Sale Price-$575,000
Terms- 2 week cash close, due diligence to be done upfront, buyer pays closing and buyer agent. This will be a double close done by seller selected title company and a Pre- HUD will be furnished before fully executed contract.
4431 Ortega Blvd Jacksonville, FL 32210
Features-
-6083sqft
-on St. John’s River
-large pool
-6 bedrooms
-5.5 bathrooms
-chefs kitchen
It does need some rehab. This property was sold in 2006 for $3.7mm. There are no recent sold comps in the neighborhood but there are 2 houses for sale.
4105 Ortega Blvd at 2.95mm and 4805sqft
4115 Ortega Blvd at 3.39mm and 5881sqft
This property would make a great investment.
Price-$1,750,000
Terms-Terms of sale- buyer pays closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.
805 19th st west Palm Beach, FL 33407
It features
-4 apartments each 2 bed with 1 bathroom
-2916 sqft
Does need rehab. Asking $170,000
Terms- 2 week cash close, due diligence to be done upfront, buyer pays closing and buyer agent. This will be a double close done by seller selected title company and a Pre- HUD will be furnished before a fully executed contract.
Crystal Snyder
Mike Cathell,
Broker/Owner, Investment Property Consultant
Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC
Almost like being back in school, here are a couple of definitions to memorize. Both are taken from Dictionary.com
Crowdfunding has become the new reality for Real Estate Investment. The advantages to crowdfunding are:
The reason I also posted the definition for Vetting is another advantage of crowdfunding. 
The properties are analyzed by a group of Real Estate Investment professionals. You are not at the whim of a single agent. You are given an ID into the group website to view your trasactions as they are funded or purchased (transparency). You also can view the properties, purchases and sales of the group as a whole.
Some of the groups have an average return of 11.5% to 14% return on short term Property Investments. I t can go much higher for long term Property Investments.
I am working with a small team presently to Flip properties in Central and SW Florida. Future blogs will talk about the progress of the group. If interested in learning more about what we are doing or to get information about being a member, text “Investment” to (239) 770-6250 or email InvestSWFL@gmail.com.
Mike Cathell,
Broker/Owner, Investment Property Consultant
Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC
I have a small Property Investment & Strategy group that meets in SW Florida and the question I ask the most often is “What is your Property Investment Strategy?” Most often the answer – “I don’t have one.”
To quote the Cheshire Cat in “Alice in Wonderland” – “If you do not know where you are going, it does not matter how you get there!”
Enough quotation marks! The point is how can you measure your progress if you do not have a plan? There is an endless list of ways to make money in Real Estate Property Investing. Some of the choices you need to make include:
Our group has a three-year plan that involves flipping at first. The next phase will be to continue flipping properties but to hold select properties as cash flow properties. The third phase will continue flipping and holding but now to add building houses to our portfolio.
Watch for future blogs if you are interested in being a member of our Southwest and Central Florida Investment Groups.
Mike Cathell,
Broker/Owner, Investment Property Consultant
Real Estate Services of Citrus County, LLC
Real Estate Services of SWFL, LLC
Investment Property Strategies 